Standard deduction

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Under United States tax law, standard deduction is the dollar amount that can not be categorized from its earnings before the income tax is applied. Taxpayers can choose itemized or standard deductions, but usually choose which ones result in smaller taxes to be paid. Standard reductions are available for US citizens and foreigners who live for tax purposes and for individuals, married persons, and heads of households. The standard reduction is based on the filing status and usually increases every year. It is not available to non-resident aliens living in the United States (with some exceptions, for example, students from India on F1 visa status may use standard deduction). Additional amounts are available for people who are blind and/or at least 65 years old.

Standard deduction differs from personal exclusion, which is also available to all taxpayers and dependents. The Cuts Tax and Jobs Act of 2017 eliminate personal exemption from 2018-2025, while also almost doubling the standard reduction.

Video Standard deduction

Reduction of basic standards

The amount of basic standard deduction applicable for the 2006-2018 tax year is as follows:

Maps Standard deduction

Other standard deductions in certain cases

The standard deduction may be higher than the subtraction standard if one of the following conditions is met:

• The taxpayer is 65 years of age or older;
• The taxpayer pair is 65 years of age or older;
• The taxpayer is blind (generally defined as having no vision corrected at least 20/200 or having extreme "limitations in the field of vision"); and/or
• The blind taxpayer couple (see definition above).

For each applicable condition, a taxpayer adds $ 1,100 to his standard deduction (for 2010). However, an additional reduction is $ 1,400 for unmarried individuals.

For dependents, the standard deduction equals the revenue received (ie, compensation for services, such as wages, salaries, or tipping) plus a certain amount ($ 300 in 2010). The reduction of the dependent standard should not be more than the basic standard deduction for non-dependent, or less than a certain minimum ($ 950 in 2010).

Consider the following examples:

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References

• 1040 User Guide for 2005, page 36.
• Revenue procedure 13-35, https://www.irs.gov/pub/irs-drop/rp-13-35.pdf, adjustment for inflation 2014.

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External links

• Internal Revenue Service Website

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